ICICI Bank Charges for Cash Repayment of EMI: Old Charges Disguised as New
In a bid to promote digital transactions, ICICI Bank reportedly plans to impose a 'Cash Transaction Charge' on customers who go to a bank branch and deposit their EMI (equated monthly installment) in cash to repay loans. 
 
The move has caused consternation for two reasons – first, it amounts to an additional charge above the contracted interest charges, and second, it is likely to hurt the financially less endowed borrowers more. 
 
From 15th September, ICICI Bank plans to levy a charge of Rs 100 for payment of EMI by cash on various loan products and GST will be charged separately on this. These charges will apply to home loans, personal loans, car loans, consumer finance loans, education loans, commercial vehicle loans, two wheeler loans, construction equipment loans, medical equipment loans, office equipment loans, three wheeler loans, used car loans, government sponsored loans, farm equipment, farmer finance, loans to self help group, top up loans, pradhan mantri rojgar yojana and other products as identified by the bank.
 
Interestingly, while media reports seem to indicate that cash handling charges on EMI are a new development, we found, on checking the bank portal, that ICICI Bank has already been charging this Rs100 as charges for cash payment of EMI. 
 
 
Moneylife has reached out to ICICI Bank for a clarification but we have not heard from them yet. This story will be updated if and when we get a response. 
 
Many customers are often not aware of the charges levied by banks on various services (cash deposit charges, cash handling charges, SMS alert charges, charges for lack of maintenance of average minimum account balance, annual debit card charges, card replacement charges, stop payment charges, cheque bouncing charges, standing instructions charges, documentation charges). 
 
Cash handling charges are levied by many banks on cash deposits beyond a certain limit of transactions. In most cases, the first few transactions are free. Almost all banks insist on maintaining a minimum average monthly or quarterly balance in your savings account. In case you fall short of it, the bank levies a penal charge. 
 
Usually the rules are more relaxed for transactions made at your home branch. Bankers say that cash handling charges form a significant part of charges levied by the bank. While transacting from your home branch allows you higher limits, you still have to pay charges of Rs50-150 per transaction, if you exceed that limit. 
 
If you want to avoid shelling out unnecessary fees and charges, keep track of your accounts and cards, and use chargeable bank services only if you really need them. Keep track of all the transactions and check them carefully for all charges being levied. 
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    COMMENTS

    m.prabhu.shankar

    2 months ago

    Not good for customers with very small loans, shopkeepers etc...

    s5rwav

    2 months ago

    Did Mr #ShaktikantaDas the #RBIGovernor Approve the Proposal of the #BoardOfDirectors of ICICI Bank Limited? I am Babubhai Vaghela from Ahmedabad. Thanks.

    SC to Centre: Consider Not Charging Interest on Interest during Moratorium
    The Supreme Court on Thursday asked the Centre to consider a plea for not charging interest on interest on deferred EMIs during the moratorium period and also not downgrade the credit/asset classification of the borrowers.
     
    A bench headed by Justice Ashok Bhushan, R Subhash Reddy and MR Shah asked the Centre, Reserve Bank of India (RBI) and the banks to put their heads together within two weeks to decide on crucial issues—sector-specific loan restructuring, charging of interest on interest, etc—and then come up with a concrete decision.
     
    Solicitor general Tushar Mehta, appearing for the Centre, submitted that an expert committee at the highest level has been set up to take decisions on the issue of moratorium extension, interest on interest during moratorium and other connected issues.
     
    The top court said it is inclined to grant two weeks to the Centre to file an appropriate affidavit and it will consider different prayers made by petitioners on the next date.
     
    The top court observed that its interim orders shall continue till the next date of hearing, where it had said that accounts not declared non-performing assets (NPAs) on 31st August, shouldn't be declared NPAs till further orders.
     
    The top court will take up the matter on September 28. The top court also directed the Centre, RBI and banks to place their decisions on the matter before it.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    Nationalised banks to bring convenience of banking to customers' doorsteps
    As part of the EASE Reforms, public sector banks (PSBs) on Wednesday launched the doorstep banking service that will bring convenience of banking services to the customers at their homes through the universal touch points of the call centre, web portal or mobile app.
     
    The new service was inaugurated by Finance Minister Nirmala Sitharaman while participating in a virtual awards ceremony organised to felicitate best performing banks on EASE Banking Reforms Index.
     
    The doorstep banking service provides customers an interface with the bank through various touch points and also enables them to track their service request through these channels.
     
    The services are rendered by the Doorstep Banking Agents deployed by the selected service providers at 100 centres across the country.
     
    At present, only non-financial services such as pick up of negotiable instruments (cheque/demand draft/pay order, etc), of a new cheque book requisition slip, of various forms, request for account statement, delivery of non-personalised cheque book, delivery of term deposit receipt, acknowledgement, etc, delivery of TDS/Form 16 certificate issuance etc are available to customers.
     
    From October, banks would start even offering financial services under doorstep banking service, a Finance Ministry statement said. The new service is chargeable and customers would need to pay a nominal fee for the bouquet of services.
     
    Meanwhile, the government also felicitated thee Bank of Baroda, the State Bank of India, and erstwhile Oriental Bank of Commerce for being the top three (in that order) in the 'Top Performing Banks' category according to the EASE 2.0 Index Results.
     
    The Bank of Maharashtra, the Central Bank of India and the erstwhile Corporation Bank were awarded in the 'Top Improvers' category basis EASE 2.0 Index.
     
    The Punjab National Bank, the Union Bank of India, and the Canara Bank were also recognised for outstanding performance in select themes.
     
    The government launched ease agenda, aimed at institutionalizing clean and smart banking in January 2018, and the subsequent edition of the programme 'EASE 2.0', built on the foundation laid in EASE 1.0 and furthered the progress on reforms.
     
    PSBs have shown a healthy trajectory in their performance over four quarters since the launch of EASE 2.0 Reforms Agenda. The overall score of PSBs increased by 37 per cent between March-2019 and March-2020, with the average EASE index score improving from 49.2 to 67.4 out of 100.
     
    Progress has also been seen across six themes of the Reforms Agenda, with the highest improvement seen in the themes of 'Responsible Banking', 'Governance and HR', 'PSBs as Udyamimitra for MSMEs', and 'Credit off-take'.
     
    PSBs have adopted tech-enabled, smart banking in all areas, setting up retail and MSME Loan Management Systems for reduced loan turnaround time and PSBloansin59minutes.com and TReDS for digital lending.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    m.prabhu.shankar

    2 months ago

    Please stop all these Jumlas and try to run the bank professionally first. Customers will come to banks and when they come their provide an excellent service. That is enough. These door step service, bedroom bed side service and all are not required. No customer is expecting this at least as of now when compared to your current service standards.

    parimalshah1

    2 months ago

    One more avenue for fraudsters!

    ssndeepmore89

    2 months ago

    The Nationalised Banks don't even pick up my calls, so I can imagine a world of difference between theory & implementation

    deepak.narain1

    2 months ago

    It is a rosy picture good for publicity only. The ground level situation is dismal. I am talking of Punjab National Bank (acctts No. 0176000100166013 and 4614000100042666). I am a Pensioner aged 79 years suffering from acute heart and kidney problems. Whatever I write to them by e mail, they seldom reply or act upon. I am forced to bear helplessly.
    Recently, I have written to RBI in response to their Master Circular about disbursement of Pensions, mentioning all the problems I have been facing. I have sent copies to the concerned branches also.
    It will be a miracle if I would get any positive reply/action.

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